What Is The Best Way To Get Into Investing In Pre-construction...(m)
I want to keep my options open and try new ways of making money. Pre-construction is not hands on, no dealing with distressed homeowners. I think I may like that.
1)How do you decide which projects to put your money into?
2) Are the contracts assignable? I mean you're dealing with contractors, why would they care if you want to assign it to someones else?
3)If your contract isn't assignable, how do you sell and avoid having to go to the closing table?
4) What is usual cost to get in on a pre-constuc. deal?
quinn
I have to make a correction, I wouldn't want to assign the contract, I would want to sell the contract and make full profit off the property.
quinn
There are lots of topics regarding this. I am also very interested and have researching it as well. Here is an thread by Gfous that goes into detail a little bit:
http://www.thecreativeinvestor.com/ViewTopic34496-26.html
Hope this helps!
Sunztu18
From experience it is best to form a relationships with developers or their agents/brokers in order to be informed of the project before it is advertised on the market (in the planning stages) but like any investment it has to make sense financially, do the math.
2. Some are assignable and some are not somethings developers charge a fee if the contract is assigned. They care because when you reserved the property you got it at a lower price and is making a profit while they are also trying to make a profit selling similar property so you are competing with them taking the profit they would have gotten if the purchase was made directly from them.
3. Your RE attorney can explain how to have the third party pay for closing cost etc.
4. Most are asking 1-30% which are paid in phases. All RE prices depents on the market in which you are looking to purchase. Make sure the figures adds up.
From experience it is best to form a relationships with developers or their agents/brokers in order to be informed of the project before it is advertised on the market (in the planning stages) but like any investment it has to make sense financially, do the math.
2. Some are assignable and some are not somethings developers charge a fee if the contract is assigned. They care because when you reserved the property you got it at a lower price and is making a profit while they are also trying to make a profit selling similar property so you are competing with them taking the profit they would have gotten if the purchase was made directly from them.
3. Your RE attorney can explain how to have the third party pay for closing cost etc.
4. Most are asking 1-30% which are paid in phases. All RE prices depents on the market in which you are looking to purchase. Make sure the figures adds up.
What? are you talking about owning one suite in a large hotel and renting it out?
Hope you get some bites on this, but I've not heard of the idea.
who would rent from you?
Wouldnt you be in conflict with hotel management?
How would this work?
Dan
It is becoming a very popular form of owning real estate. Trump has a large condo hotel going up in chicago. I'm not going into specifics - but many large hotel chains are doing this as well.
Apprentice2Him
The hotel rooms will becondo/suites (privately owned). They have a rental program that I can place the condo into when I'm away, whereby they rent the room to their guest and split the proceeds with me.
Has anyone done this? Is it profitable?
What a very interesting idea...I'd love more details on how donald trump is running this.
Unfortunatly I don't have any experience with this and can't advise you one way or the other.
Thanks for your response. I have been consulting with real estate agents, attorney, contractors and investors and have learned a lot.
Yes this is becoming very common especially in the marketing in which I am buying.
[ Edited by NYRE on Date 10/24/2004 ]